System for disposing of invalid cards in a credit card system or the like

ABSTRACT

A system for disposing of invalid cards in a credit card system or the like, wherein the identification numbers of those of the cards issued which have become invalid are recorded in the system, so that if the identification number of a card presented to the system agrees with any one of the recorded invalid card numbers, that card is recognized as invalid and the identification number written on the card is erased therefrom and at the same time the corresponding number is removed from the record in the system.

United States Patent Morita et al.

[1 1 3,655,946 [451 Apr. 11, 1972 Appl. No.: 68,840

[30] Foreign Application Priority Data Sept. 11, 1969 Japan ..44/72138US. Cl. ..235/61.7 B, 235/61.11 D, 340/149 A Int. Cl ..G06r 5/00 Fieldof Search ..340/149, 149 A, 152, 365;

[56] References Cited UNITED STATES PATENTS 3,254,201 5/1966 Miller..235/61.7 B 3,353,006 11/1967 Pollock et a1..... ..235/61.l1 3,559,175l/197l Pomeroy ..340/149 A 3,221,304 1 1/1965 Enikeieff et a1 ..340/365Primary Examiner-Thomas A. Robinson Attorney-Christensen, Sanborn &Matthews [5 7] ABSTRACT A system for disposing of invalid cards in acredit card system or the like, wherein the identification numbers ofthose of the cards issued which have become invalid are recorded in thesystem, so that if the identification number of a card presented to thesystem agrees with any one of the recorded invalid card numbers, thatcard is recognized as invalid and the identification number written onthe card is erased therefrom and at the same time the correspondingnumber is removed from the record in the system.

SYSTEM FOR DISPOSIN G OF INVALID CARDS IN A CREDIT CARD SYSTEM OR THELIKE This invention relates to a system for disposing of those of thecards used in a credit card system or the like which have becomeinvalid.

At present credit cards are in wide use at banks, stores and the likeestablishments for depositing or withdrawing money or purchasingarticles or services. Generally, credit cards have recorded thereonvarious information or data, by which the validity of the cards istested when they are used in the system, so that the system operates toperform required actions in response to valid cards alone. To test thevalidity of cards, the system is generally provided with means forrecording the identification numbers of those of the cards issued whichhave been invalidated, so that the identification number of a card usedis collated with each of the recorded invalid card numbers to see ifthey agree. With this arrangement, if a card is stolen or lost, itsidentification number is newly recorded in the system as an invalid cardnumber. In the prior art system, however, once recorded as invalid, thecard numbers must be kept in the record so long as the system exists,and it is impossible to predict how many cards will become invalid, sothat the recording means must have a great ability to record or storethe increasing number of invalid card numbers. In other words, theremust be a large space in the machine to accommodate the increasingnumber of recording elements for recording the increasing number ofinvalid card numbers. This is very inconvenient and uneconomical.

Accordingly, it is one object of the invention to provide a system fordisposing of invalid cards in a credit card system or the like, whereinit is not necessary to record the identification numbers of invalidcards for ever.

Another object of the invention is to provide a system for disposing ofinvalid cards in a credit card system or the like, wherein theidentification number of an invalid card proviously recorded in thesystem can be removed therefrom once the invalid card has been used.

Another object of the invention is to provide a system for disposing ofinvalid cards in a credit card system or the like, wherein when a cardthe identification number of which is recorded as an invalid number hasbeen used in the system, the identification number written on that cardis erased therefrom so that the card cannot be used again, and at thesame time the identification number of that card is recorded so that thecorresponding invalid identification number recorded in the system maybe removed therefrom.

In one embodiment of the invention, when a card has been stolen or lost,the identification number of the card is recorded as an invalid cardnumber in a recording means prvided in the system. When a card is used,its identification number is collated with each of the invalid cardnumbers recorded in the system. If the identification number of the cardused is found to agree with any one of the recorded invalid cardnumbers, that number is erased from on the card so that the card can nolonger be properly used in the system again. The card may be returned tothe owner or collected into the machine. Since the card cannot be usedany longer, it is not necessary to maintain the record of theidentification number of that card any longer. Therefore, the record isremoved from the recording means. Thus, the recording means for invalidcard numbers need not have a very large capacity.

The invention, with the above and other objects, features andadvantages, will become more apparent from the following descriptionwith reference to the drawing showing a block diagram of one embodimentof the invention.

A card 10 presented to the system is conveyed by a suitable conveyor 11to a predetermined position. As it is being conveyed, the identificationnumber of the card is read by a card reader 12 and the card number readis stored in a register 13. These operations are controlled by acontroller 14. The card 10 is made of a suitable plastic material havingnecessary information written or recorded thereon. The card is providedwith a magnetic film on which the identification number of the card andother necessary information are recorded by a suitable code.

If a card is lost or stolen, the identification number of that card isrecorded as an invalid card number in a recorder 15. The recorder 15comprises a magnetic drum or a diode matrix circuit. The identificationnumber of the card stored in the register 13 is collated by a collatingcircuit 16 with each and every one of the invalid card numbers aspreviously recorded in the recorder 15. If the card number in theregister 13 does not agree with any one of the invalid card numbersrecorded in the recorder 15, the card is recognized as a valid card, sothat a cash dispenser l7 dispenses a required amount of money. Theseoperations are also controlled by the controller 14. On the contrary, ifthe card number in the register 13, that is, the identification numberof the card used coincides with any one of the invalid card numbers inthe recorder 15, the card is determined as invalid, so that the cashdispenser 17 does not operate. Instead, a recorder 18 records theidentification number of that invalid card stored in the register 13.The recorder may comprise a tape punch, a printer or a computer. At thesame time an eraser 19 operates to magnetically erase the identificationnumber written on the invalid card, and the conveyor 11 operates toreturn the card to its owner or collect it into the machine so as not tobe returned. The invalid card the identification number of which hasthus been erased will no longer be able to operate the cash dispenser 17even if it is used in the system. Therefore, that one of the invalidcard numbers recorded in the recorder 15 which corresponds to the cardnumber recorded in the recorder 18 is removed from the recorder 15. Thisis effected automatically by means of a remover 20, or manually by anoperator on the basis of the record by the recorder 18. Thus, inaccordance with the invention, once an invalid card has been used, theidentification number of that card need not be kept in the recorder 15any longer, so that it is removed therefrom, with a resulting decreasein the number of invalid card numbers to be recorded therein. This meansthat the recorder 15 need not have a very large capacity.

In the above embodiment the invention has been applied to a cashdispensing system. However, it is applicable to any other system whichemploys similar cards.

What we claim is:

1. A system for disposing of invalid cards in a credit card system orthe like, comprising: first means for recording the identificationnumbers of those of all the cards issued which have become invalid;means for reading the identification number of a card presented; meansfor collating the identification number of said presented card with eachof said recorded invalid identification numbers; means for treating saidpresented card so as not to be useable any longer when theidentification number of said presented card agrees with one of saidrecorded invalid identification number; second means for recording theidentification number of said presented card; and means for removing therecord of the identification number of said presented card from saidfirst recording means.

UNZTED STATES PATENT OFFICE CERTIFICATE OF CORRECTION 3 655 946 DatedApri ,1 QLL I 212 Tadao Morita and Masanori Nagata Patent No.

Invencofls) P It is certified that error appears in the above-identifiedpatent and that said Letters Patent are hereby corrected as shown below:

I- The above-identified patent is assigned to Omron Tateisi ElectronicsCo. of Kyoto, Japan.

Signed and sealed this 1st 'day of August 1972.

(SEAL) Attest:

EDWARD M.FLETCHER,JR. ROBERT CJrO'IFI'SCI-IALK- Attesting OfficerCommissioner of Patents

1. A system for disposing of invalid cards in a credit card system orthe like, comprising: first means for recording the identifiCationnumbers of those of all the cards issued which have become invalid;means for reading the identification number of a card presented; meansfor collating the identification number of said presented card with eachof said recorded invalid identification numbers; means for treating saidpresented card so as not to be useable any longer when theidentification number of said presented card agrees with one of saidrecorded invalid identification number; second means for recording theidentification number of said presented card; and means for removing therecord of the identification number of said presented card from saidfirst recording means.